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Rights and Responsibilities Summary

This is a summary of the customer service policies for Intermountain Gas Company’s residential and small commercial customers, as determined by the Idaho Public Utilities Commission (IPUC). These policies cover the rights and responsibilities of customers and utilities. If you have questions about these policies, contact Intermountain Gas or the IPUC at the numbers listed below:

Intermountain Gas CompanyIPUC Consumer Assistance

P.O. Box 7608

Boise, ID 83707-1608

208-377-6840 (Boise/Treasure Valley)

800-548-3679 (other areas)

Fax: 208-377-6081

www.intgas.com

P.O. Box 83720

Boise, ID 83720-0074

208-334-0369 (Boise/Treasure Valley)

1-800-432-0369 (other areas)

Fax: 208-334-4045

www.puc.idaho.gov

Deposits/Policies

Are Deposits Required?

Deposits are not required for service unless:

1. You have an outstanding bill for prior service within the last four years.

2. Your service was disconnected for one of the following reasons:

a. Nonpayment of a bill.

b. Misrepresentation of identity.

c. Failure to pay for damages.

d. Unauthorized use or theft of service.

3. You supplied false information at the time of application for service.

4. You are a residential customer and did not have service with Intermountain Gas for a period of 12 consecutive months during the last four years and do not pass an objective credit screen.

5. You request service at a residential address where a former customer who owes a past due balance for service incurred at that location still resides.

6. You receive two or more written Final Disconnect Notices in a 12-month period.

7. You have filed bankruptcy.

8. You are a small commercial customer applying for service for the first time.

You may pay the deposit in three installments, one-third of the deposit amount at the time of application, with the remaining installments payable within two months.

Intermountain Gas pays interest at a rate set annually by the IPUC. The deposit, plus interest, will be refunded when you leave service or when you have paid all bills satisfactorily for 12 consecutive months.

Instead of paying a deposit, you may receive service if someone else signs a guarantee for your bill. This person, called the guarantor, must be an Intermountain Gas customer of the same rate class and have 12 months’ good credit history with the company. The guarantor is responsible for an amount equal to the deposit amount, and will be released from obligation after 12 months of satisfactory payments have been made.

Service Disconnection

Your gas service can be disconnected with proper notification for one of the following reasons:

1. Not paying a bill by the due date, or paying with a payment transaction not honored by the bank.

2. Failure to pay deposit.

3. Failure to keep payment arrangements.

4. Misrepresenting your identity to receive service.

5. Denial of access to meter. The customer or applicant denied or willfully prevented the utility’s access to the meter.

6. Wasting service through improper equipment.

7. You are a minor not competent to contract as an adult.

8. You owe a past due amount on an existing account or from a previous account.

Notification and acceptable payment

Written notice is mailed at least seven calendar days before the disconnection date.

At least 24 hours before disconnection, an attempt is made to contact you to remind you of the original notice. If service is not disconnected within 21 calendar days after the proposed date, Intermountain Gas will again provide notice if service will be terminated.

Company employees visiting the customer’s premises to disconnect service for nonpayment will not accept cash. Payment offered at the door must be in the form of a check, money order or proof of payment through a designated payment agency.

In the event of a transaction not honored by the bank, or failure to make a payment on a payment arrangement, Intermountain Gas can disconnect service without further notice.

Disconnections without notification

Service can be disconnected at any time without customer notification if:

1. A situation exists that is immediately dangerous to your life, physical safety or property.

2. The IPUC, a court or other authorized public agency orders a disconnection.

3. Natural gas is used without authorization.

Restrictions on disconnections

Service cannot be disconnected if:

1. Your unpaid bill totals less than $50, unless the bill is for two or more months of service.

2. You are charged for another customer’s bill, or for any other class of service.

3. The unpaid bill results from the purchase of non-gas goods or services.

4. The unpaid bill is for service provided four or more years ago unless the customer has promised in writing to pay or made a payment on the bill within the last four years.

5. You fail to pay amounts in dispute while a complaint filed with the IPUC is under review.

6. You fail to pay amounts in dispute while a case is pending before a court in the state of Idaho unless authorized by court order.

Except in unusual situations (see disconnections without notification), service will not be disconnected on any Friday or day preceding a legal holiday or on a Saturday, Sunday or legal holiday.

Payment Arrangement Options

If you cannot pay your bill in full, arrangements can be made with Intermountain Gas to pay part of the amount due immediately and the remainder in installments. If this arrangement is made, a schedule will be developed outlining how the balance will be paid.

Intermountain Gas has many payment options available to help you manage your monthly bill: Level Pay helps you budget by paying an even monthly amount throughout the year. AutoPay will automatically deduct your authorized gas payment each month from your financial institution. For those who qualify, Winter Pay allows you to pay a portion of your utility bill when you are unable to pay the full amount each month. Our online payment service allows you to pay your gas bill on our website; it is a free, convenient and secure service.

Medical emergencies

Residential customers may delay disconnection if you are unable to pay your bill and a permanent member of the household becomes seriously ill, or if disconnection may cause a medical emergency. A written certificate from a doctor or public health official, stating the name of the person affected, will postpone disconnection of service for 30 days from date of receipt. A second 30-day extension may be granted if requested.

Winter protection

If you have children, elderly or infirm in your household and declare to us that you are unable to pay your bill in full during the months of December, January or February, your residential service will not be disconnected for non-payment during those months. If, when you declare your inability to pay in full, you agree to be placed on the Winter Payment Plan (WPP), your protection from disconnection will be extended to include the months of November and March. To receive the benefits associated with the WPP, you must pay your WPP account each month.

Third-party notification

As a residential customer, you may want a third party notified regarding a suspension of service. You may choose a friend, relative, member of clergy, or agency. The third party is not responsible for paying your bills, but may do so.

Rate Information

Intermountain Gas is a regulated utility under the jurisdiction of the IPUC. The term “regulated utility” means regulators must approve our rates when any rate change is proposed by Intermountain Gas.

What components are in our gas rates?

The rates we charge residential and commercial customers for the gas we deliver include two major components: the Customer Charge and the Per Therm Charge, which includes the Cost of Gas and Distribution Cost.

The Customer Charge recovers a small portion of the costs incurred to provide service to your home or business.

Therms identify the heating capacity provided by natural gas. One therm equals the heating capacity of 100,000 British Thermal Units (BTU).

The Cost of Gas includes the weighted average cost of gas as well as the interstate pipeline and storage related costs incurred to deliver the natural gas to Intermountain’s local distribution system. It also includes the temporary “Purchased Gas Adjustment” (PGA).

The Distribution Cost includes costs incurred to move natural gas through Intermountain’s local distribution system.

On residential customer bills we collect a small charge to recover costs incurred by the Company for its residential energy efficiency programs.

What is a PGA?

It’s a method of reconciling or “truing-up” the prices Intermountain pays for purchasing and transporting gas to our customers, as compared to the tariff rates currently in effect. The price we pay for natural gas fluctuates daily, yet the rates we charge our customers are normally adjusted only once each year through the PGA mechanism. Intermountain’s earnings do not change as a result of a proposed rate change reflected in a PGA.

Rates: Intermountain classifies rates based on the type of service provided. These rate types, or tariffs, determine the charges used to calculate your bill. The rates have been approved by the Idaho Public Utilities Commission:

RS (Residential Service): Applicable to any customer using natural gas for residential purposes.

GS-1 (General Service): Applicable to customers whose requirements for natural gas do not exceed 2,000 therms per day, at any point on the company’s distribution system. Requirements in excess of 2,000 therms per day may be served under the rate schedule upon execution of a one-year written service contract.

IS-R or Interruptible Snowmelt (Residential): As a residential customer, you will be billed under this tariff if you use natural gas to melt snow and/or ice on sidewalks, driveways, or any other similar appurtenances.

IS-C or Interruptible Snowmelt (Commercial): Small commercial customers using natural gas to melt snow and/or ice will be billed under this tariff.

If you have recently made a change to your gas appliances that would affect your rate classification, please contact Intermountain Gas Customer Service.

Franchise fee: Intermountain Gas obtains the right to construct, maintain and operate a gas transmission and distribution system from most municipalities we service. An annual fee of approximately 3 percent is collected with the customer’s monthly billing and passed through to these cities. If a customer lives outside the city limits, the municipal franchise fee does not apply.

Complaint Procedure

You may file a complaint with us at any time. Upon receipt of your complaint, it will be investigated immediately. The results of our investigation will be given to you and you will be given an opportunity to discuss our findings with us. If you are still dissatisfied after contacting us, a complaint may be filed at any time with the IPUC. Your service will not be disconnected based upon the subject matter of the complaint while it is under investigation as long as you continue to pay all amounts not in dispute.

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